South Korean man indicted for online gambling operations assisted by North Korean hackers

A South Korean man in his 50s who was the ringleader of a criminal network that opened and sold illegal gambling websites with the help of North Korean hackers working under North Korea's Munitions Industry Department’s 313 Bureau has been indicted.

[JOONGANG ILBO]

A South Korean man in his 50s who was the ringleader of a criminal network that opened and sold illegal gambling websites with the help of North Korean hackers working under North Korea's Munitions Industry Department’s 313 Bureau has been indicted.

The Seoul Central District Prosecutors’ Office on Monday indicted a man surnamed Kim on charges of violating the National Security Act, operating illegal gambling sites as well as violating the Act on Regulation and Punishment of Criminal Proceeds Concealment.

Kim secretly contacted hackers from the 313 Bureau who were active in China and used their assistance to open a total of 16 illegal gambling sites from 2022 to 2024, which he then sold domestically. He also consulted the North Korean hackers for troubleshooting issues that arose during the operation of the websites.

The North Korean hackers not only created the gambling websites for Kim but also provided automated advertisement macro programs to promote the sites online.

Investigators confirmed that Kim exchanged 1,181 messages via Telegram and other platforms with two North Korean hackers over just two months between October to November 2023 using his mobile phone.

Using this support, Kim operated and sold illegal gambling sites in South Korea from March 2021 to August 2024, earning approximately 23.5 billion won ($17.2 million) through site maintenance fees and commissions on gambling credits.

[JOONGANG ILBO]

The 313 Bureau oversees North Korea’s IT strategy and typically sets up front companies in places like Dandong, China, to generate foreign currency by producing illegal software on consignment.

Of the 23.5 billion won Kim earned, at least 7 billion won was transferred to the North Korean hackers. Prosecutors suspect that this money was handed over to the North Korean regime and used as ruling funds by North Korean leader Kim Jong-un.

To expand his criminal gambling site distribution and evade law enforcement, Kim resided in China. The National Intelligence Service received intelligence in early 2023 that a South Korean national based in China was continuously distributing illegal gambling online in South Korea.

The Seoul Metropolitan Police’s National Security Investigation Division arrested Kim when he entered South Korea in November 2023. Following a year and a half of investigation, Kim was arrested and detained on May 7.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY JEONG JIN-WOO [lim.jeongwon@joongang.co.kr]